Economic diplomacy for Nepal
Economic diplomacy is about understanding how to make use of a country’s distinct characteristics or comparative advantage to maximise the advantages for its people, and put in location sound policies developed to attain these objectives. Nepal is a nation abundant in water resources and other assets such as Himalayan medical herbs, and it has a […]
Economic diplomacy is about understanding how to make use of a country’s distinct characteristics or comparative advantage to maximise the advantages for its people, and put in location sound policies developed to attain these objectives. Nepal is a nation abundant in water resources and other assets such as Himalayan medical herbs, and it has a big capacity for the development of tourism and other services sectors. The nation is well positioned to bring in foreign financial investment to harness its natural resources and establish its services sector considering that it has actually attained some degree of political stability.
To start with, under the rules of the World Trade Organisation (WTO), Nepali products delight in duty-free and quota-free access in global markets. What is more, the WTO has actually decided to approve a waiver for service sector items from the least industrialized countries to the markets of both developing and established nations. To put it simply, financial diplomacy ought to be about making use of such chances provided by worldwide law for a least-developed country such as Nepal.
Land-locked countries have felt disadvantaged, but their status might in fact end up being a true blessing in camouflage for highland land-locked nations such as Nepal, as people from low lying locations start to pursue a place or area in such nations.
Nepal will not have to set up seaside defences investing billions of dollars to cope with sea-level increase, nor will it need to handle population transfer from one location to another to conserve them from the unfavorable impact of sea-level increase. Nepal will not need to handle the El Niño impact or the consequences of a tsunami. Highland land-locked states might be viewed as more secure places for investment, house and organization than low-lying countries such as Bangladesh or the Maldives.
Exploiting the conventional image of a neutral and non-aligned country, Nepal might establish itself into a local hub of global legal and worldwide relations organizations. It can take a hint from the Netherlands which has actually developed its capital city, The Hague, as the legal capital of the world, exploiting initially its status as a relatively neutral nation.
Switzerland is another example. The city of Geneva has actually benefitted a lot not just as a centre of financial services but also as the home of a lot of international organizations. Almost two-thirds of the real service activities of the United Nations are carried out by its agencies located in Geneva. If the physical infrastructure of Nepal were to be improved in cities like Kathmandu and Pokhara, Nepal would be well put to develop these cities as local hubs of global legal and international relations activities such as local arbitration centres and local think tanks.
Another possibility would be to develop Nepal as a monetary services centre along the lines of Switzerland, Andorra, Jersey, or perhaps the Island of Man. As individuals in Nepal’s neighbouring countries grow richer, they will be looking to transfer their money in a safe, neutral nation. With its traditional picture of a reasonably neutral country, Nepal would be an appealing venue for people to move their cost savings.
If appropriately developed within an appropriate level of a worldwide legal structure and handled and controlled well, it can end up being a sizeable source of profits generation. International experience has revealed that those who are well off wish to spread their wealth by depositing it in bank accounts in various safe and secure locations. There is absolutely nothing to avoid Nepal as a sovereign country from offering the monetary services that the abundant need. For this, Nepal must have political stability, preserve rigorous and strong stability with both its neighbours, emerge as a safe and neutral location to do organization in, have a robust structure of laws created to secure investments, and manage the monetary services market according to global requirements.
Based on the experience of a variety of nations, it can be stated that the most influential elements for foreign financiers when selecting a country for investment are: Unrestricted access to consumers both in your home and abroad; Political stability; Impartial execution of the guideline of law; Independent judiciary; Adequate infrastructure; Noise regulatory program; Competitive tax regime; Quality of labour; Control of corruption; Openness in choice making. Nepal should address each of these elements seriously.
Attracting outsourcing service from other advanced countries, not only from the West however likewise from neighbouring nations such as China and India, is another activity which will promote Nepal’s economy. With quickly growing success and a rising middle class in both our immediate neighbours each with a population of more than one billion, Nepal has a big readymade market at her doorstep.
Centre of attention
Increased competition for influence in Nepal among its immediate neighbours and other major powers can benefit the development of the country. Competition to name a few nations for Nepal’s natural and other resources and for the development of the tourism sector need to increase its bargaining power and bring in more income. For a nation like Nepal, it is helpful to be the centre of attention and a location for healthy competitors.
Nepal is blessed a lot by nature with a lot beauty, biodiversity and natural resources, including water resources. It is the nation of Mt Everest, the Buddha and Pashupatinath. The country is the cradle of Hindu and Buddhist civilisations, and it has functioned as a bridge in between Indian and Chinese civilisations for centuries, spreading the message of peace, universalism, multiculturalism and tolerance. There is every prospect of more success for Nepal, provided that the country is able to put in place sensible policies designed to exploit its comparative benefit and geostrategic status.
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